North Carolina Down Payment Support Programs

Online Merchant account - The North Carolina Housing Finance Agency got two excellent programs for first-time Home Buyers. These systems will be the Down Payment Assistance Program and the Mortgage Credit Certificate.

You also purchase a house between January 1, 2009 and December 1, 2009 and should you qualify for one of those plans, you might also be eligible for the $8,000 tax credit merely enacted into law.

First, who's a first-time Home Buyer? A first-time Home Buyer is someone who hasn't owned a home in the past three years. That is exactly the same qualifying definition.

A Mortgage Credit Certificate (MCC) is a federal tax credit to help home buyers with average and low incomes.

You can claim 20% of the interest you pay as a credit on your own federal income taxes in case you qualify for the MCC. It is possible to save up to $2,000 on your taxes.

You may find a way to combine this with the $8,000 tax credit should you qualify for the MCC, for 2009. This would reduce a purchaser's tax liability .

Who Qualifies for an MCC?

Who qualifies for an MCC is based on your income along with the cost of the home you're purchasing. Household income is defined as the “gross income of the mortgagor and any other individual expected to live in the dwelling who's 18 years old or older.”

House price limits that apply in Durham Orange and Chatham Counties and the income are given below.

MCC Income Limits 1 Individual $61,500 2 Individuals $61,500 3 Men $70,500 4 Men $70,500

MCC Sales Price Limits New Dwelling $220,000 Existing Home $210,000

Home buyers that want help with their deposit and closing prices might be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The customer only has to pay $1,000 of their own funds and the load would pay around .

This program has more stringent income limits than the MCC program summarized above. Like the MCC program, it might be used in conjunction with the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The down payment assistance, however, can't be applied in conjunction together with the MCC. This really is an either or situation.

House price limitations that apply in Durham, Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Individuals $45,650 3 Men $51,350 4 Persons $57,050

Down Payment Assistance Sales Price Limits New House $210,000 Existing House $210,000